There are several types of crypto wallets, each of which has different ways of storing keys and providing access to them. The three main categories are software (which in turn are divided into online, desktop and mobile), hardware and paper.
Types of crypto wallets:
# Desktop (local) wallets are downloaded and installed on a personal computer/laptop. You can log in to your account exclusively from the same device on which they are installed. This gives a certain level of security, but at the same time, it is dangerous in a situation where the computer is infected with a Trojan or virus.
# Web wallets (online) work in the cloud, they can be accessed via a browser from any device. This also includes storages presented in the format of a browser extension, which is convenient for accessing web3.
# Mobile cryptocurrency wallets are applications for mobile platforms. They are convenient because you can perform an urgent operation anywhere at any time.
# Hardware crypto wallets store the user’s keys on an external device similar to a USB flash drive — this is their main difference from software. With the help of such devices, you can store cryptocurrency offline, connecting to the Internet only when you need to make a transaction. If you have lost your wallet, the finder will not be able to use it, since access is protected with a PIN code.
# Paper wallets for cryptocurrencies guarantee a high level of security, and are also quite easy to use. This definition can refer to two concepts: a simple physical copy of printed public and private keys, as well as software that is used to create a pair of keys that are then to be printed.
# Hot and cold wallets. The former are constantly connected to the Internet during operation. This is convenient for making fast and frequent transactions, but for obvious reasons it is much less secure. Cold wallets (hardware, paper), until they are connected to a software wallet, are always completely autonomous and inaccessible to hackers.
# Custodial, non-custodial. The custodial ones completely take over the storage of the user’s keys — in fact, the user does not even have access to these keys. For a beginner, the option may be good because it is simpler, similar to conventional fiat payment systems. However, all professionals, without exception, choose non-custodial wallets, preferring to independently control their keys.
# By the number of supported blockchains/cryptocurrencies: multi-currency (universal) or designed for specific assets.
Then it will be more interesting, we will consider each one!
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This article is not legal advice and is purely informative. The author of the article is not responsible for the time spent reading it and the actions that you have taken!